Delta Air Lines, Inc. | $DAL Stock | Shares Surge As Carrier Posts Upbeat Q2 Earnings

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Delta Air Lines, Inc. (NYSE: DAL) 


Shares of Delta Air Lines, Inc. climbed marginally in the early minutes of regular trading Thursday, after the company presented its financial results for the June quarter 2018.

The Atlanta Georgia-based airline had a solid second quarter, but rising fuel costs have forced it to lower its full-year earnings forecast.

DAL Earnings & Outlook

The company posted a profit of $1.03 billion, or $1.47 a share, compared with $1.19 billion, or $1.62 a share, in the second quarter of last year.

Adjusted for one-time items, earnings came in at $1.24 billion, or $1.77 a share for the three months ended June 30, 2018. Analysts polled by Thompson Reuters had expected Delta to report to earnings of $1.72 per share.

Revenue was $11.8 billion, an increase of 9.6% from $10.75 billion in the prior-year period. The company’s revenue was also ahead of analyst estimate of $11.7 billion.

Looking ahead, the company expects full-year earnings to between $5.35 and $5.70 per share, from the earlier guidance of $6.35 to $6.70 per share.

Delta’s board of directors has also approved a 15% quarterly dividend increase to $0.35 per share, payable August 16 to shareholders of record as of July 26. 

Delta Air Lines CEO Comments

Delta chief executive officer Ed Bastian said, “With an expected $2 billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be $5.35 to $5.70 per share. We have seen early success in addressing the fuel cost increase and offset two-thirds of the impact in the June quarter. With strong revenue momentum, an improving cost trajectory, and a reduction of 50-100 bps of underperforming capacity from our fall schedule, we have positioned Delta to return to margin expansion by year end.”

Delta Air Lines, Inc. Company Profile

Delta Air Lines offers scheduled air transportation for passengers and cargo in the US and worldwide. Its segments of operation are; Airline and Refinery.

The company centers its route network on international gateways, hubs, and airports in Detroit, Amsterdam, Los Angeles, Atlanta, Boston, London, Minneapolis, New York, Paris, Salt Lake City, Tokyo, and Seattle.

Delta sells its tickets via various distribution channels, including mobile web/applications, online travel agencies, telephone reservations, traditional retailers, among others.

The company also offers aircraft overhaul, maintenance, and repair services; aviation, staffing, and professional training and security services to third parties.

Further, it provides vacation packages to third party consumers, as well as aircraft management, and programs and charters.

The company owned and managed a fleet of around 800 aircraft as of February 9, 2018.

The competitors of the company include United Airlines, SkyTeam, Southwest Airlines, American Airlines, Spirit Airlines, Alaska Airlines, Etihad Airways, JetBlue Airways, Emirates, Allegiant Air, Qatar Airways, British Airways, Lufthansa German Airlines, Qantas, Air Canada, Iberia, All Nippon Airways, and Japan Air Lines.

Delta Air Lines, Inc. was founded in 1924 by Collett Everman Woolman. Its headquarters are located in Atlanta, Georgia. –Reuters